SHEL - Shell sells stake in Indonesia assets to Pertamina Petronas for up to $650M
2023-07-25 07:25:26 ET
Shell ( NYSE: SHEL ) said Tuesday it agreed to sell its 35% stake in Indonesia's Masela production sharing contract, which includes the Abadi gas project, to PT Pertamina Hulu Energi and Petronas Masela for as much as $650M in cash.
Shell ( SHEL ) said it will receive an initial $325M plus another $325M when the final investment decision is taken on the Abadi gas project.
Japan's Inpex has a 65% operating interest in the Masela PSC and is the operator of the Abadi gas project; Indonesian authorities are reviewing Inpex's plans to exploit Abadi as a 9.5M metric tons/year onshore liquefied natural gas project, which would include a carbon capture and storage project.
Pertamina CEO Nicke Widyawati said the Abadi purchase was meant to ensure adequate oil and gas supply for Indonesia's energy needs.
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Shell sells stake in Indonesia assets to Pertamina, Petronas for up to $650M